The Specialist

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

He’s a valuable advisor to ambitious Indian businesses with global dreams. Meet Vishesh Chandiok, National Managing Partner, Grant Thornton India or should we call him the prized merchant of the great Indian dream...

Those traditional mahogany interiors, the plush couch, complete with leather upholstery and, of course, fine tobacco smoke circles wafting from the pipe, held carelessly between his lips. Simple and sober, yet exuding dollops of classic old world charm. That’s Vishesh Chandiok for you, National Managing Partner, Grant Thornton (GT), India.

Gordon Gekko, a character from the 1987 film Wall Street (that even won Michael Douglas an Oscar) said that “Money never sleeps” and Vishesh Chandiok, who specialises in helping his clients multiply their money and investments, agrees wholeheartedly: “You make money in this business by charging time, so work life balance is to some extent a fallacy.”

In the business of money, somebody wins and somebody loses, but for Vishesh and his firm Grant Thornton, the success of their clients is their success, as their firm has aligned its growth with the success of its 1200-odd active client base. As the fifth largest accountancy firm globally and one of the oldest in India, Grant Thornton claims to cover anything and everything under the entire advisory value chain. “It depends by service really, from an idea to compliance and possibly exit; or business plan to implementing that plan; or designing an India-entry strategy, if it’s a global company; we even do HR issues, like compensation structure and organisation design; or cross border transactions, including inward and outward M&As and helping a PE/VC firm identify an investee,” boasts the man at the helm of Grant Thornton’s Indian affairs.

So what differentiates GT from the once big eight, to now the big four global accounting and consulting firms (PwC, Deloitte, Ernst & Young, KPMG). “We have no ambitions of wanting to be a part of that group. Our focus is quite different from the focus of those firms, which is to be the auditors of the top 1000 companies. Our focus is to concentrate on the mid-market segment,” explains Chandiok. Besides, GT’s focus clearly remains on privately-held businesses or promoter driven companies, where the promoters require solutions; it could be listed, it could be unlisted, very large firms, generally where promoters are actively involved in the management and where the requirement stems beyond merely the compliance requirement of audit. This is in stark contrast to other accounting firms that are present through the length and breadth of the industry. “Whatever market we specialise in, we remain the leading firm. So, if in India our key focus areas are technology, real estate and healthcare, we are the clear leader in real estate,” Chandiok points out.

As Indian businesses continue to realise their ambition to become global companies by scaling their operations, advisors too are raking in big money. The total deal value including M&A and Private Equity has reached $70.14 billion ($51.11 billion for M&As and $19.03 billion for PE) in 2007, as against $28.16 billion in the previous year. Consider PE investments only in India. From just 60 deals worth $1.1 billion in 2004, the number has reached a whopping 405 deals worth $19.03 billion in 2007. “Outbound acquisitions is one area where we have worked a lot. We were involved with some of the most high profile ones,” says Chandiok. These include the i-flex’s acquisition of Mantas, Subex acquisition of Azure systems, formula one acquisition by Vijay Mallya, just to name a few. But the jewel in GT’s crown is being ‘the most active nominated advisor (merchant banker)’ for companies looking to list at the Alternate Investment Market (AIM) platform on London Stock Exchange (LSE).

“AIM of the LSE is the best market to provide growth capital for early to mid stage companies,” feels Chandiok. Rather than assessing a company on the basis of its past performance, AIM values it on future potential. Moreover, the advantages of AIM are that it offers flexibility and has no minimum requirement; secondary issues are very clear and thus fund raising is much easier. “No doubt designed primarily for emerging or smaller companies, AIM is considerably the best, with balanced regulation and not loosely held, what many critics feel. Besides, it’s not cheap,” defends the ‘specialist’ when it comes to AIM listing’. There have been other successful growth markets KOSDAQ (Korea), SASDAQ (Singapore), TXSV (Toronto), GEM (Germany), but no one is close AIM. In 2007, as many as nine India centric companies were listed on AIM, raising a total of $846 million, as per a fact sheet by the London Stock Exchange. Some of these companies include UTV Motion Pictures, Dev Property Development, Evolvence India, Promethean India and Indian Film Company.

But what is that crucial element that GT looks for before associating with companies? “First and the foremost belief in management team; expertise in the sector, what they have done before in the same business or previous business and generally me and my collegeue who come from Grant Thornton UK, all of them have been very impressed with quality of management overall. Second thing that we look for is future potential, so immediate profits don’t matter,” he avers, adding that lastly, there must be a reason good enough, as to why they want to raise international equity. “Of course, we can also educate them about the positives of overseas listing,” he says.

“As a nominated advisor or a nomad (as it is known), GT sits on top of the head of a company and ensures proper functioning, in accordance with the rules and the regulation with various authorities,” says Chandiok with finality, adding that at the end of the day, if you want returns on investment, you need to be really on your toes all the time. Did someone say, making moolah was a cakewalk?

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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A well-kept secret unrevealed!

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Korea’s leading ad-agency is all set to take the Indian advertising industry by storm

“Cheil is the best kept secret of Indian advertising arena… but not for long!” points out a confident Prathap Suthan (with a smirk on his face), National Creative Director, Cheil Worldwide, South West Asia. Cheil Communications, grown under the shade of being an in-house agency of Samsung, has the potential to outshine many big names in the Indian adland. So what is it that has kept Cheil inside the shell for so long?

Cheil was conceived to help Samsung to flaunt its advertising campaigns, so in the beginning the agency just focused on Samsung. But of late there has been a lot of restructuring and new hiring going on in the agency. Pat (as he is fondly called) has been brought on board with an aim to expand the agency and equip it for future challenges. “Cheil is no longer just a Samsung based agency… Many clients are willing to come along with us, however I can’t reveal any names right now,” reveals Prathap. Even though Samsung still remains its hottest account, Cheil has some more exciting accounts & campaigns lined up for 2008.

Pat proclaims that Cheil is preparing itself for its new role very seriously. “Within six months, Cheil will be equipped to take on any agency in this country in terms of a pitch. We are ready to strike back with a vengeance,” he says. Ask him about the billings of the agency and the reply comes with a mysterious smile, “The figures will make all heads turn around in surprise. It is larger than many of the bigger agencies of this country.” This confidence is obviously backed by the agency’s outstanding global performance. It is South Korea’s largest advertising agency & grabbed 16th position in the global ranking by Advertising Age in 2006. Their consolidated billing for 2006 was $1,936 million. Cheil has kicked off numerous high-profile campaigns for Samsung Electronics, including the ‘Imagine’ branding campaign spanning across 80 countries. Some of its successful global campaigns include the Olympic Marketing campaign, Samsung brand campaign in Russia, Samsung ‘SangSaeng’ campaign et al. Some of its recognised campaigns in India include: ‘Har ghar mein khushi…Har ghar mein Samsung’, ‘Meri duniya mere phone ki nazar se’ etc.

Pat has no qualms in admitting that despite being an in-house agency, Cheil is at par with any of the ‘out-house’ agencies of India. Elaborating on this, Pat says, “It’s just a mental block. As an ad-man, you’ve to be convinced about your agency. My role is to ensure that this place becomes a very bright talented place.” He adds further, “I don’t want people to think that they are working for an in-house agency because then they would make them feel inferior. Rather I would say I’m not only superior to my counterparts but even superior to my clients; I lead my clients.” Undoubtedly, Pat resounds the confidence of an agency leading one of world’s largest consumer electronics maker – Samsung. And this confidence is reinforced when he says, “Cheil’s secret will soon be revealed and it will leave the veterans of advertising in amusement.” Sure Pat we will wait!

Edit bureau: Savreen Gadhoke

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
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The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)

Catch the stars when young!

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Now tweens offer prodigious potential for marketers in India

How many of us reading this article have grown up viewing the Boost commercials starring cricketers like Kapil Dev, Sachin Tendulkar & Virendra Sehwag crooning the famous lines, ‘Boost is the secret of my energy’? Well, the answer is ‘most of us have!’ Even today there would only be a handful who would dare to resist the cup of steaming drink that promises to refresh, nourish & energise you after a hard day at work!

In an eon, where brands continuously keep tinkering with their tagline and brand ambassadors, Boost ever since its debut in 1974 in the Indian markets as a protégé of GlaxoSmithKline (GSK), has focused its brand communiqué consistently on the game of cricket, which has been the cornerstone of Boost’s brand promotions. In 1986 Kapil Dev was roped in as the brand ambassador for Boost and as a cricketer, Kapil was considered an icon by many. The baton was then passed to the baby-faced teenager, Sachin Tendulkar in 1989. The Little Master has since then remained steadfast in his support for Boost. He also roped in his opening partner Virendra Sehwag as brand ambassador in 2001, with millions going gaga over the on-screen chemistry between the opening duo. And in a nation where the game of cricket is a religion, GSK aptly identified cricket as the vehicle to boost the sale of Boost. Soumitra Karnik from J. Walter Thompson (the agency which has created many memorable commercials for Boost) proffers, “Being associated with the game of cricket has nothing to do with other sports such as tennis or hockey being inferior or anything of that sort. It is just that cricket as a sport is more followed than others in our country.”

Not wanting to stagnate in the market, from time to time, Boost has ‘boosted’ its presence in the market through product innovation & packaging. The ‘shrink-sleeved’ packaging was pioneered by Boost in the year 1999, for which Boost won the prestigious World Star award. When it comes to innovation, Boost is a front runner in the Health Food Drink (HFD) category. In November 2002, Boost came out with ‘Power Boosters’ – a concept which not only revolutionised the HFD category but also infused fresh life in Boost; the brand then captured the position of number one brown HFD.

Interestingly, Boost has never changed its tagline, ‘Boost is the secret of my energy’ (the most recalled ‘sign-off’ in its product segment) and has always restricted itself to a handful of stars. Karnik reasons, “Boost has always associated with top performers and it is difficult to have a copy of someone like Sachin Tendulkar and we have used individuals rather than the entire team in our campaigns.” Be it the promotional campaign for ICC World Cup 2003 or the unfurling of Choco Blast in 2006, Boost surely has a trick or two up its sleeves to capture the minds & souls of millions.

Having concertedly stuck to a single tagline and a well-conceived association with cricket and of course a great tasty product... it doesn’t take a lot to hit upon the secret to Boost’s energy.

The first & foremost reason is India’s demographics, which indicate that tweens form a major chunk of India’s population. According to Cartoon Network Generation Next report, 84% parents allow kids to accompany them while shopping. And just glance at their annual revenues – Rs.364 crore per year (pocket money + gift money)! Out of this, Rs.291 crore is spent, an impressive income-expenditure ratio. Naresh Gupta, National Head, Planning, Grey Worldwide, states, “Tween is the ‘make a category’ audience. They are the largest & most open group. They adopt new brands, new appeals willingly & live for the brand.”

Moreover, their growing interaction with technology & access to information makes them aware of brands much faster & response times are much lower. As Malini points out, “In changing India, parents realise that they may not have been exposed to things as much as their kids have and hence encourage and even rely on them to be an influencer in major household decision making.” Adds Titus Upputuru, Creative Director, Ogilvy & Mather, “Owing to their acquaintance with technology, they end up playing teacher/guru to their parents. Roles are changing....” The tween is also much more sensitised and responsive to brand ‘stimuli’ and media promotions. No wonder, these little stars are grabbing the eyeballs of marketers today.

Edit bureau: Pallavi Srivastava

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
When IIPM comes to education, never compromise
IIPM, GURGAON
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!

Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)

If winter comes, so will spring...

When IIPM comes to education, never compromise

How brands try and retain salience when they are hit by sluggish off season sales...

One fine day, Summer was relaxing. As she was about to take a sip from her chilled cola drink, there was incessant knocking on the door. Summer stretched lazily, yawned and shuffled to the door, but the moment the door was opened, she froze… well, it was Winter in all his white glory, eager to show his fury. This is no mythological story; it happens every year in India. With Winter’s bugle roaring loud, it’s not only Summer that loses her shine, but there are several others who confront a similar predicament.

Quite unmistakably, the ones who suffer the most during the winter months in any given year are the giants from the beverages space, more specifically Coca-Cola and PepsiCo. Their state during the chilly season (which lasts for as many as 6 months – at least up north) is one of a complete blackout and the explanation comes easy in the sagging sales of their respective star products – Coke and Pepsi, in addition to other soft drinks (7UP, Slice, Dew, Mirinda, Thums Up, Fanta, Limca, Sprite, et al) adorning their Indian portfolio.

In fact, every winter serves as a new challenge for these globally most recalled brands, when consumers virtually go into hibernation so far as taking a swig from cold drink bottles is concerned. Industry sources reveal that the winter season accounts for a microscopic 5-10% of the total sales of any given year for these beverage giants.

So, what’s the big problem, you ask? After all, given the number of years that they’ve been in business, the cola majors must have gotten used to it now. And if there’s a lean season, they more than make up for that during summers, right? Well, you’re partly right. Winter sales are not the main problem. The real issue is of ‘brand recall’ during the lean months and its potential impact.

Consider this, when people were blind folded and were made to drink Coca-Cola and Pepsi Cola seperately, they were unable to differentiate between the two. Thus, as per customers, products of the two cola majors remain almost the same, and yet under normal circumstances, they are extremely loyal to their respective favourite drink brand (which could be either of the two). Clearly, since product attribute differentiation is virtually absent between the two drinks, it’s undoubtedly the brand that matters the most. And the fiery red & white of Coke and Pepsi’s bubbly blue are key factors that make the brand.

So the winter challenge before marketers at both Coca-Cola & PepsiCo is to maintain respective brand values at the same level that prevail during summers (when cola giants go over the top promoting their star brands via conventional and new approaches). So how do the two cola giants plan to get into the act in the winter of 2007? Corporate branding, that’s how! Seen Coca Cola’s ‘Little Drops of Joy’ campaign lately... well, the engaging communication serves to remind consumers (in the lean season) that Coca-Cola is around. Acclaimed advertising guru Prasoon Joshi explains the thought behind the campaign: “Coca-Cola in India just doesn’t quench thirst; it recharges one’s soul, for a moment, one drop at a time which is what we’ve tried to capture in the Manifesto.”

Venkatesh Kini, VP-Marketing, Coca-Cola India told 4ps-B&M, “We don’t have any particular branding strategy for any season, but of course we do select particular time periods for launching any product. So if we find some products are suitable for winter we will launch that and we will also promote them.”

In stark contrast, PepsiCo India is in a much better position , even in the lean season because of the synergies they can churn out with their snacks (Frito Lays) and juices (Tropicana) portfolio. PepsiCo even plans to cash in on the ongoing festive season with its gift packs, comprising an assortment of its carbonated drinks and snacks. While Coca-Cola has recently launched Minute Maid to add to its juices portfolio, they have virtually no presence in the snacks segment.

“We are going to launch lots of new products and some of them will be in this year itself. For all of them we will have different promotional campaigns. We will not necessarily go with a celebrity brand ambassador. because beverages or healthy products work more on word of mouth,” explains Kini.

What’s more, this winter sales saga is even relevant for the white goods and consumer durables sector.

Usually, the demand for compressor based products (air conditioners, et al) observes a significant decline and here too the guru mantra remains the same, to promote your brand as a whole via umbrella branding, varied product lines and channels (For the seasonal saga of white goods major Electrolux, read the box interview alongside).

However, the festival season (with its spate of discounts, offers and lucrative schemes), which lasts nearly till the end of the year, more than makes up for consumer durable majors like LG, Samsung, Whirlpool and Eletrolux. After all, these companies do derive almost 30-40% of their annual sales during the consumer rush in the season.

Nevertheless, winter may bring a little shadow in seasonal product categories, but once the ice age melts away, summer begins smiling again. Just a few months more to refuel their arsenal and come March-April, the marketing war breaks out once again... in full earnest!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!

Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)

Live life ‘King Khan’ size!!!

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How SRK, the superstar lives in the shadow of Brand SRK

What is common between Pepsi, Hyundai, Sunfeast, Lux, Compaq, Emami, Airtel, Videocon, Dish TV? Well they surely don’t fall under the same category, nor do they share the same brand values. Then what is that one thing binding all the above brands. A ‘King’! But not just any king, we’re talking about the ‘King of Bollywood’. He’s done it all. He is a man who always hits the box office with his impeccable energy and talent, who has changed the whole outlook of the national sport of India, a man who added the oomph factor in the third series of most popular game show on Indian television, a man who is undoubtedly the Badshah of the Indian Film Industry – Shah Rukh Khan.

Bollywood’s ‘King Khan’ is the ultimate epitome of entertainment and has reinvented himself a million times. SRK as a brand is enormous; his charisma is magnificent and at times even magical. Whatever SRK does, it’s larger than life. At the age of 42 Shahrukh khan has once again become the talk of the town with his six packs and pony-tailed hair. Film critic Taran Adarsh says, “Look at the determination in him that he can do this at the age of 42.”

But at this age he has finally become larger-than-life. He thinks that he can endorse any brand, even a Sona Chandi. He’s becoming like Big B, who is the ambassador for any and every brand. Meet the new SRK, who feels he can sell any product.

No wonder from cars to biscuits, to hair oil, to banks, to soap and even fairness cream, all want to associate with him. States Arun Kumar Kapoor, CEO, Dish TV, “We’re in the entertainment business, with a technology product. We’re a vibrant young brand, but geekish at the same time. The guy who fitted the best in this was Shah Rukh Khan He embodies the brand personality of Dish TV & embodies the values this brand stands for.”

With the entry of brat packs like Hrithik and Abhishek, critics had literally written off Khan, but they are now eating humble pie after the super-duper success of first Chak De! India and now Om Shanti Om (OSO). Clearly the Badshah is back with a bang! Undoubtedly, in the ad world SRK takes home the fattest pay package. Rumour tongues wag that Khan rakes in close to Rs.100 crore annually in endorsements alone. And why not? When SRK endorsed the family car Santro in 1998, the sales of the Korean car shot up like anything.


The company is now hoping that the man with the midas touch does it again for Hyundai’s i10 brand, after all one can see the sorry state of Hyundai’s Getz and Elantra, which the star did not endorse. When 4Ps B&M caught up with Santosh Desai, MD & CEO, Future Brands, he opines, “He (SRK) has a charismatic star quality that he gives to all brands. He is able to get everyone to relate to him and suddenly at the same time he gets larger than life. He can empathise with the brand and also get the star power at the same time.” After all, who can forget, SRK lounging in a bath tub, with Bollywood beauties, and with his great élan giving ‘them’ a run for their money. And it seems that his clientele for endorsements is increasing, what with the news of SRK signing endorsement deals with Jet Airways & Essel group doing the rounds.

He is truly the harbinger of entertainment in India and globally. With plenty of shows abroad, the paparazzi in US & UK have put him on the same pedestal as Tom Cruise or Brad Pitt. Incidentally in the UK box office, with only 52 prints and a collection of half million pounds, the SRK starrer OSO has handsomely beaten Tom Cruise’s latest flick, Lions for Lambs, which could only muster 400,000 pounds from its 404 prints released.

Film critic Taran Adarsh says, “SRK bring to all brands his endless energy and the positive vibes. SRK makes watching all ads a delight.” However, some factions feel that by endorsing all that comes his way, SRK might be diluting his veritable brand image. “It does affect him and the brands. For instance, there is nothing that Sona Chandi Chyawaprash would take back from SRK. There should be the stature and the script should bring it out. Like Akshay has been doing comedy films but Thums Up put him back as the action star and that has impacted his value,” avers K. V. Sridhar, National Creative Director, Leo Burnett, India.

Incidentally, SRK’s absence in endorsing for social causes has become quite noticeable. In 2007, Big B topped the list, with 65% of such endorsements on TV. Juhi Chawla bagged the second spot with 18% and John Abraham stood at the third spot with 4%, but the prominent exclusion from the list was that of King Khan.

In fact it was supposed to be a grand battle between Big B and SRK. However, today’s youth identifies with SRK, as they have grown up watching his films. It’s a battle between two big wigs, between Rahul and Vijay. Or shall we say a battle between Belmonte and Reid & Taylor.


Vareen Gadhoke Ray


For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
When IIPM comes to education, never compromise
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career

Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)

Convenience Healthcare

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It has the right strategy to focus on customer care, open speciality institutes. But will its hub-n-spoke model work?

A religious trip to Vaishnodevi Temple turned bad for the Sehgal family. On his return, Rajiv Sehgal, Executive Director, GKB, met with an accident. He was rushed to Delhi, but no hospital would admit him without an enquiry. Only Max Healthcare did it. Says his wife, “It provided us with all the support we needed. When it comes to care, we think Max is the best.” Such comments speak volumes about the growing popularity of Max Healthcare.

Reveals Sanjay Rai, Director, Sales & Marketing, Max Healthcare, “We treat our patients in a totally different way. Gone are the days, when patients where treated as patients. Now, they are treated as customer. We believe in this principle. We have implemented world class services in our hospitals and we have a 70% occupancy rate.” In a bid to strengthen relationship with the patients, Max has offered facilities or commissions to doctors who refer patients for diagnostic tests.

This is the right strategy to adopt as healthcare in urban India becomes matured and developed. Look at developed markets like the US. According to a recent article in McKinsey Quarterly, “New research indicates that the US patients and physicians are more and more likely to base their choice of hospitals on non-clinical aspects of a visit – like convenience and amenities. Yet few hospitals have the marketing skills, the organisational structure, or the operating approach needed to deliver a distinctive experience in the way that retailing and hospitality companies do.”

Therefore, success in healthcare, in a sense, will be all about customers’ delight. And Max has been at the forefront to strategise it. In addition, the group has joined hands with Harvard Medical International, an arm of Harvard Medical School, and Singapore General Hospital for clinical practice, research and training. Max Healthcare can also claim to be the pioneer of the hub-and-spoke model in India.

Industry sources contend that Max plans to offer India’s first distance-education MBBS programme, and it is in discussions with America’s Oceania University. Sources reveal that while the theory part of the course will be based on long-distance model, the practical will be at various Max units. Adds Rai, “We have expanded, and entered into several JVs. This has helped us to focus on NCR centric delivery.”

However, it was not an easy road to health and success. Initially, the hub-and-spoke model didn’t work. Doctors saw organised primary clinics as competition to their private practises and, therefore, were unwilling to join Max. Patients didn’t prefer Max as it had few well-known doctors. In 2003, the CEO and Chief Medical Officer left the company. The next year, Harvard Medical International terminated its contract. But then nothing could stop Max’s promoter, Analjit Singh.

To woo customers to pay higher prices, Max forged alliances. Thus, it had dedicated customers, whose bills were picked up by their organisations. Singh realised that a more profitable category was specialised centres, where patients had to come because of a drastic shortage in urban areas. Hospitals constituted another lucrative segment that was tapped by Max. Pipes in Rai, “We have launched a Brain Suite, which is the best healthcare device for brain tumour. We have plans to create a national centre of excellence.”


This too may be the right strategy for the future. Another article in McKinsey Quarterly concludes that US hospitals and healthcare firms need to change their approach and focus to survive, and thrive. “A vital step is to compete on the basis of strengths in specific clinical service lines rather than relying on the power of full integration. Several large payers are already nudging hospitals in this direction by adopting a ‘centre of excellence’ approach.”

But Singh has to remain a little apprehensive about his horizontal integration approach. The 1990s witnessed a wave of hundreds of M&As in the US healthcare sector. They were all driven by the logic that such integration will lead to economies of scale, cost reductions, market power, and automatic patients referral. All of them eluded most buyers in a few years’ time. There was a grim realisation that being present in every field may not be a great idea, and multi-hospital systems “do not necessarily outperform independent hospitals.”

Today, the buzzword in America seems to be ‘boutique hospitals’. Stated a recent article in McKinsey Quarterly: “Private clinics… have already gone beyond private rooms to offer luxury suites, catered meals, and round-the-clock private nurses. In Seattle, the team physician for a professional sports franchise opened a practice that charged patients $20,000 a year for 24-hour access to medical services.... In Minnesota, a chain of “cash-and-carry” medical clinics in shopping malls promises walk-in patients that they will be able to walk out within 30 minutes, for a premium of about 75 percent over customary fees. ”

Moreover, as hospitals become focused and patients value conscious, healthcare firms will need to do what pioneers are doing in other services sectors. “Like cutting-edge retailers, they must identify the characteristics of the patients they can best serve and attract those people by creating specific value propositions,” says a recent global study. Only then can Max claim to be a glocalised healthcare group.


Edit Bureau: Sreoshi Ghose

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
When IIPM comes to education, never compromise
IIPM, GURGAON
IIPM - Admission Procedure
Why Study Abroad When IIPM Gives You 3 global Advantages!

Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)

Honour, well deserved!

Why Study Abroad When IIPM Gives You 3 global Advantages!

Retrospecting on Hema’s reflections...

She chewed our ears off as the motar mouth Basanti, she took everyone’s breath away as the ultimate Dream Girl and with each passing year, she continues to glow just as radiantly. A great mother, an ace actor, a beautiful performer and a sharp politician; she performs the balancing act with absolute ease. At 58, Hema Malini steals glances with her charming elegance and poise. She started her second innings with Baghban and what a comeback it was!

The Bangkok International Film Festival (July 19 – July 29) honoured the lady and held the first retrospective of her career. Hema left for Bangkok with her younger daughter Ahana, to revive old memories and enjoy the adoration and recognition. One witnessed Lal Patthar, Sholay, Baghban and Dillagi being showcased at the festival. Ravi Chopra, the maker of bhagban , has only praises to spare, “I personally feel that this honour is well-timed considering her contribution to the Indian film industry has been tremendous. In fact, amongst the yesteryears’ actresses, Hema Malini was one of the only real superstars. She is a great artiste and looks better than lots of new-age women. All I can say and hope is that it’s only the beginning for her and I look forward to working with her in my future projects.”

Hema walked the red carpet, clad in a beautiful traditional saree, and we bet she loved the attention and is now basking in the afterglow!
Edit Bureau: Neha Sarin

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
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Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)

Back to the ‘Future’

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With Indian players more than willing to take forward the retail juggernaut, donning the king’s cap in this highly dynamic sector is certainly no mean feat. But Kishore Biyani led Future Group has done it with a great aplomb. With its flagship store Pantaloons, the group ventured into the area of modern retail in 1997 and since then there has been no looking back. Later the group entered value retailing with its Big Bazaar and Food Bazaar stores. Their presence in the retail space reached a crest when they launched their own apparel brands like Indigo Nation, Scullers and Urban Yoga under their group company, Indus League Clothing.

With a strong emphasis on delivering value to its customers, Future Group’s corporate credo reads – Rewrite rules, Retain values. Little wonder that Future Group has subscribed to ‘Indian-ness’ as one of its core values that is followed religiously in allits stores. While speaking to 4Ps B&M, Sanjay Jog, Head-HR, Future Group, states, “We are an Indian company and so we believe that ‘Indian-ness’ should flow out. There are numerous steps that we undertake to reinstate the ‘Indian-ness’, like we encourage our employees to talk in their local languages.”


For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
When IIPM comes to education, never compromise
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!

Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)

Spice Jet provides some hope

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“The world does not need a Superman.” We are sure those of you who watched the 2006 Hollywood release Superman Returns would be familiar with this column that Lois Lane writes in the movie. It makes sense to her at least. One, she is a woman scorned. And two, she wins a Pulitzer for her pains as well! But we know quite well how desperately we need superheroes to make the world a better place, one we can only dream of.

Interestingly, the situation is quite similar with Indian aviation, where Low Cost Carriers (LCCs) have attained superhero status, by bringing dreams of flight come true for millions. But ironically, their own dreams have been clipped by a plethora of maladies like infrastructure shortages, rising ATF prices, and above all cutthroat price competition.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!

Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)